The Fundamental Difference: Identity vs Choice
For a limited company, the company name is a creative choice within the rules of the registry. For a sole trader, the starting point in most EU countries is your own legal name — and any deviation from that requires additional steps.
This matters because many founders start as sole traders for simplicity, build a brand under a chosen name, and then discover when they incorporate that the brand name is either unavailable as a company name or not automatically transferred. Planning for this transition from the beginning avoids that problem.
Country-by-Country Rules
Germany
Sole trader types and their naming rules:
| Trader type | Name requirement | Handelsregister? | Trading name possible? |
|---|---|---|---|
| Freiberufler (freelancer) | Own name only | No | No (without registration) |
| Kleingewerbetreibende | Own name | No | Trade name only via registration |
| Einzelkaufmann/frau (commercial sole trader) | Firm name (Firma) | Yes — mandatory | Yes — must be distinctive |
A Freiberufler (architect, lawyer, doctor, consultant in liberal professions) operates under their own name — "Anna Müller, Rechtsanwältin" — and does not register in the Handelsregister. Using a brand name independently of the personal name is not possible under this structure without additional registration.
An Einzelkaufmann who crosses the threshold of a "vollkaufmännischer Betrieb" (a full commercial operation, roughly €250,000+ annual turnover) must register in the Handelsregister and has the right — and the obligation — to operate under a Firma (trading name). That Firma must be distinctive; a name like "Berliner Handelsgeschäft" would be rejected. The Firma can be a fantasy name, the owner's surname, or a combination.
When switching to GmbH: The GmbH gets its own Handelsregister entry and company name. The previous Einzelkaufmann Firma can, under HGB §24, be carried over to the GmbH if there is business continuity, but this is not automatic and requires legal documentation.
France
Entrepreneur individuel (EI) / Auto-entrepreneur:
French sole traders register as entrepreneur individuel (EI), which since 2022 includes the auto-entrepreneur (microentrepreneur) status. The legal name is: [Prénom Nom], Entrepreneur Individuel.
A nom commercial (trading name) can be used and registered separately with the INPI for around €190 (national trademark) or at the Greffe. On invoices and official documents, however, you must always include your legal name alongside any trading name.
What is permitted: Using "Studio Lumière — Jean Dupont, EI" on a website is fine. Just "Studio Lumière" on invoices, without the legal name, is not compliant.
When switching to SARL or SAS: The EI registration is personal and non-transferable. You create a new company entity. Your nom commercial can be registered as the new company's name or trade name, subject to availability at the time of incorporation.
Netherlands
The Netherlands has one of the most flexible systems for sole traders (eenmanszaak). When you register with the KVK, you choose:
- Your legal name for the entity (usually your personal name)
- One or more handelsnamen (trade names) that the business operates under
Trade names are registered in the same KVK database as company names and trade names of BVs and other entities. The Handelsnaamwet (Trade Names Act) applies equally — your trade name must not be identical or confusingly similar to an existing registered trade name or company name.
This means a sole trader in the Netherlands has essentially the same freedom (and the same search requirements) as a BV when choosing a trading name.
When switching to BV: You can often carry your trade name to the new BV, but you must re-register it in the KVK under the new entity. The old eenmanszaak registration is closed.
Spain
Spanish autónomos (self-employed/sole traders) do not register a company name in the Registro Mercantil. They are identified by their personal name (nombre y apellidos) for all tax and legal purposes. There is no Registro Mercantil entry to search or reserve.
However, an autónomo who wants to operate under a trade name (nombre comercial) can register it with the OEPM (Oficina Española de Patentes y Marcas) as a trademark-like right. This is a separate process from company registration and costs approximately €145 for one class.
What is permitted: An autónoma named "Lucía Fernández Ruiz" can register "Diseño Crea" as her nombre comercial and use it on her website, invoices, and marketing — but her tax documents will always show her personal name.
When switching to SL: The SL name goes through the Registro Mercantil Central certification process (Certificación Negativa). Your previously registered nombre comercial at OEPM does not automatically become the SL name, and the SL name availability check is a separate process.
Italy
Italian sole traders (ditte individuali) register with the Camera di Commercio under their personal name. A ditta individuale's name is typically the owner's surname plus optional additions (e.g., "Rossi Mario" or "Rossi Mario — Forniture Industriali").
A sole trader can register a ditta (trading name) that differs from the personal name, but this must be registered at the Camera di Commercio and must not conflict with existing registrations in the same sector and province.
When switching to Srl: The Srl gets its own denominazione through a notarial deed. The previous ditta registration at the Camera di Commercio is closed, and the new Srl is registered separately.
What Changes When You Incorporate
| Aspect | Sole trader | Limited company |
|---|---|---|
| Primary name | Usually personal legal name | Chosen company name (within rules) |
| Trading name registration | Optional; informal in some countries | Separate from legal entity name |
| Name check required? | Only for trading names | Yes, always |
| Name transferable? | Varies by country | Yes, via merger or assignment |
| Trademark tied to person? | Yes | Held by entity; survives ownership change |
The biggest practical risk is building a brand as a sole trader under a trading name, then discovering when you incorporate that either the name is taken as a company name or that your trademark (if filed) needs a formal assignment to the new entity. Address this during the planning stage, not after.
Whether you are registering as a sole trader or incorporating a limited company, checking name availability early is essential. Use EU Biz Tools' free business name checker to scan EU registries before you commit to a name.